economics easy MCQ

What is the maturity period of instruments traded in the 'Call Money Market'?

  1. 1 day
  2. 2 to 14 days
  3. 15 to 90 days
  4. 1 year

Answer: 1 day

The call money market deals in extremely short-term, uncollateralized loans between banks to meet their immediate reserve requirements. Funds borrowed for exactly one day are called 'call money', whereas funds borrowed for 2 to 14 days are termed 'notice money'.

Topic Financial Markets - Money Market
Exam Relevance SSC, Railway, Banking
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